Chapter 3-Study Information

Chapter 3-Study Information - under consideration. 7. You...

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Accounting 230 Chapter 3—Study Information Horngren 13 th Ed. 1. You should be able to define cost-volume-profit analysis. 2. You should be able to compute units and total revenue if changes are made to elements in the CVP system. 3. You should be able to compute the break-even point in units and total revenues. 4. You should be able to compute the units needed and total revenue needed to earn a target profit. 5. You should be able to incorporate an income tax rate in CVP analysis. 6. You should be able to compute the indifference point of activity if two alternatives are
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Unformatted text preview: under consideration. 7. You should be able to compute break-even points in units or total revenue if a company sells multiple products. 8. You should be able to understand and prepare a contribution income statement that emphasizes the contribution margin. (Revenues minus all Variable costs = Contribution Margin minus all Fixed Costs = Operating income minus income taxes = Net Income.)...
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This note was uploaded on 04/14/2009 for the course ACC 230 taught by Professor Jones during the Spring '08 term at Illinois State.

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